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Former Brazil President Lula detained by federal police

While Lula has not yet been arrested or charged, authorities have taken him into custody for questioning about a massive kickback scheme involving semi-public energy oil company Petrobras. His protege and now president, Dilma Rousseff, is already facing impeachment and will almost certainly get further embroiled in this huge scandal that has already put major figures in prison. Comically, they are both members of the left-wing Worker’s Party, which promises to stand in solidarity with workers and fight for justice, when it isn’t preoccupied with committing massive fraud to enrich itself and cronies.

The economy of Brazil is shrinking rapidly with distinct possibility of deep recession if not outright depression. The country is also more than a bit shaky on preparations for their upcoming Summer Olympics.

A paralyzing political crisis, rising inflation and interest rates and a sharp drop in prices of key commodity exports have formed a toxic cocktail for Latin America’s largest economy. The disastrous burst of a major mining dam and the biggest oil strike in 20 years added further strain in 2015.

It is quite extraordinary for police in any country to take a former president into custody. Yet Brazil has done just that.

Police officers on Friday raided the home of Luiz Inácio Lula da Silva, the former president of Brazil under investigation in a colossal graft scheme involving the national oil company, and took him into custody.

Comments from Zero Hedge wonder just what is going on. Indeed.

Going after Lula is extraordinary; the man in many circles is revered there similar to Reagan here. It took a lot of balls to order that and I doubt he will go down without a fight. God bless the few honest men trying to clean house in Brazil because they have a long way to go. … Maybe it is the honest men trying to clean house. Or maybe it is simply a stab in the back of a former crony. I do not know enough to decide. … One mafia boss moving against another???